How to build a systemic compliance for RWA? Watch 'The Silent Glory' a few more times.

Author: Zhang Feng

In the hit TV drama “The Silent Glory”, the workers on the covert front protect national security in silence. Their actions require not only courage and wisdom but also rely on a precise, dynamic, and clearly targeted defense system. It can be said that identity verification and permission isolation, on-chain and off-chain collaborative deep defense, continuous monitoring and stress testing, and adherence to value-oriented goals—these four aspects constitute the core of the covert front's security work.

In the field of fintech in the real world, the compliance operations of Real World Assets (RWA) also require a systematic trust engineering framework. The security and compliance of RWA are by no means purely technical issues, but rather a deep integration of law, finance, technical security, and operational management. We can compare the requirements of covert operations with those of RWA compliance operations, and see the clear logic of building a comprehensive RWA compliance system that is deep, dynamic, and goal-oriented.

1. Identity Verification and Permission Isolation: From the “Identity Disguise” of Covert Operations to the “Access Mechanism” of RWA

In “The Silent Glory,” the authentication of covert operatives is the first line of defense to ensure operational security. They ensure that core secrets are not leaked through multiple identity disguises, permission levels, and strict information isolation. For example, characters in the play infiltrate enemy camps by forging identities, while limiting the information access range of personnel at different levels through permission isolation, preventing a single point of failure from leading to a complete collapse.

Similarly, in RWA compliance operations, identity verification and permission isolation are the foundations for ensuring the credibility of participants and the security of data. RWA involves the tokenization of real-world assets through blockchain technology and trading them on-chain.

This process requires strict verification of the identities of the participants, including KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures, to ensure the legitimacy and authenticity of each participant; access control is achieved through smart contracts and on-chain rules, restricting data access and operational permissions for different roles (such as issuers, investors, regulatory bodies). For example, only verified investors can participate in specific RWA transactions, while regulatory bodies may be granted read-only access to monitor market dynamics.

The commonality between covert operations and RWA compliance lies in their emphasis on the “principle of least privilege”: granting only the necessary permissions to reduce risk. However, RWA compliance also faces the contradiction between on-chain anonymity and real-world identity binding, which requires that technological design must meet regulatory requirements while ensuring privacy. Just as covert operators need to find a balance between disguise and true identity, RWA compliance also needs to seek integration between decentralization and centralized regulation.

2. On-chain and off-chain collaborative deep defense: from “multi-line operations” to “cross-layer protection”

In “The Silent Glory,” covert operatives excel at achieving deep defense through on-chain and off-chain collaboration. In the play, they build a formidable defense network through offline intelligence gathering, online information transmission, and multi-level action coordination. For example, frontline personnel are responsible for on-site reconnaissance, second-line personnel analyze intelligence, and third-line personnel formulate strategies. This collaboration ensures that even if one link is compromised, the overall operation can still continue.

In RWA compliance, the collaboration between on-chain and off-chain is equally crucial. The tokenization process of RWA involves multi-layer interactions between on-chain (blockchain) and off-chain (real world). The on-chain part includes the issuance, trading, and clearing of asset tokens, relying on the automatic execution and transparency of smart contracts; the off-chain part involves the verification, custody, and legal transfer of ownership of real assets. A defense-in-depth approach requires security measures to be deployed simultaneously at both levels: on-chain data security is ensured through multi-signatures, cross-chain audits, and tamper-proof mechanisms, while off-chain risks are mitigated through legal contracts, third-party custody, and insurance mechanisms.

For example, RWA projects may require on-chain smart contracts to handle transactions, while off-chain, lawyers review ownership documents and custodial institutions manage related physical assets. This collaborative defense is similar to multi-line operations in covert warfare, where any single point of failure could lead to a system collapse. The challenge of RWA compliance lies in how to achieve seamless integration and verification of on-chain and off-chain data, and technologies like blockchain oracles are attempting to address this issue. Just as covert operations require timely transmission and verification of intelligence, RWA compliance also needs consistency and reliability between on-chain and off-chain data.

3. Continuous Monitoring and Stress Testing: From “Dynamic Investigation” to “Real-time Auditing”

In “The Silent Glory”, covert operatives ensure the safety of operations through continuous monitoring and stress testing. They constantly scout enemy dynamics and simulate various extreme scenarios (such as capture and intelligence leaks) to test the resilience of the defense system. The characters in the play ensure that they can respond calmly to real crises by repeatedly rehearsing and adjusting strategies in real-time.

RWA compliance also requires continuous monitoring and stress testing to maintain the robustness of the system. Since the RWA market involves high-value assets and complex financial operations, any vulnerabilities could trigger systemic risks. Continuous monitoring includes real-time auditing of on-chain transactions, regular assessments of off-chain assets, and tracking of market liquidity and compliance status. Stress testing assesses the RWA system's resilience by simulating extreme market conditions (such as price crashes and liquidity exhaustion) or malicious attacks (such as smart contract exploits).

For example, an RWA platform may require daily security scans of smart contracts, monthly third-party audits of custodial assets, and regular simulated hacker attacks to assess defense effectiveness. This dynamic monitoring and testing mechanism is akin to reconnaissance exercises in covert operations, both emphasizing that “prevention is better than cure.” However, the complexity of RWA compliance is also high, as it needs to address technical risks (such as code vulnerabilities), market risks (such as asset depreciation), and compliance risks (such as changes in regulatory policies) simultaneously. Just as covert operations need to adapt to changes in enemy situations, RWA compliance must also possess the ability to adjust dynamically to respond to the ever-evolving threat landscape.

IV. Upholding Value-Driven Goals: From “Mission-Driven” to “Compliance-Based”

The covert operatives in “The Silent Glory” always regard “safeguarding national security” as the highest value goal, and every action they take revolves around this core. Even when faced with temptation or pressure, they do not deviate from their original intention. This value-driven approach ensures the purity and effectiveness of their actions.

In RWA compliance, adhering to value-oriented goals is equally crucial. The ultimate goal of RWA is not the technological innovation itself, but rather to enhance asset liquidity, reduce transaction costs, and expand financial inclusion through technology, while ensuring compliance and safety. This goal requires RWA projects to always prioritize legal compliance, financial stability, and user protection in their design and operation. For example, while pursuing high efficiency, it is essential to comply with securities laws, tax regulations, and cross-border capital flow restrictions; while promoting inclusive finance, it is necessary to guard against fraud and systemic risks.

The commonality between covert operations and RWA compliance lies in the need to maintain strategic focus in complex environments. However, RWA compliance also faces conflicts between business interests and regulatory requirements. For instance, certain projects may overlook regulatory demands in pursuit of rapid expansion, ultimately leading to legal litigation or market collapse. Just as covert operatives are driven by their mission, RWA compliance must internalize “compliance as the foundation” as its core culture rather than viewing it as an external constraint.

5. RWA Compliance - A Systematic Trust Project

By comparing the security requirements of covert operations in “Silent Glory” with RWA compliance practices, we can see that RWA's security compliance is by no means a purely technical issue, but rather a systematic trust engineering that integrates law, finance, technical security, and operational management. It requires us to build a comprehensive defense and compliance system that is deep, dynamic, and clearly targeted, just like the elites of covert operations.

In terms of identity verification and permission isolation, RWA compliance needs to ensure the trustworthiness of participants and data security; in the collaborative defense between on-chain and off-chain, it must achieve multi-layer protection and seamless integration; in continuous monitoring and stress testing, it should possess real-time response and dynamic adjustment capabilities; in value goal orientation, it should always focus on compliance and user protection. Only through this systematic approach can RWA find a balance between innovation and regulation, truly becoming the cornerstone of future finance.

In “The Silent Glory,” there is a line: “Silence does not represent weakness, but rather a preparation for a more powerful outburst.” Similarly, compliance in RWA is not about passive obedience to rules, but about achieving a win-win situation of safety, efficiency, and value through deep thinking and systematic construction. By watching “The Silent Glory” a few more times, perhaps we can understand that true safety comes from a commitment to details, an adaptation to dynamics, and a steadfastness to value.